High Sierra Energy Sells Its Natural Gas Storage Subsidiary

Wednesday, June 8, 2011

High Sierra Energy, L.P. ('High Sierra'), a leading diversified midstream energy company, has completed the sale of its 70% owned subsidiary, Monroe Gas Storage Company, LLC ('Monroe'), which operates a FERC-regulated 12 Bcf natural gas storage facility in northeastern Mississippi, to Cardinal Gas Storage Partners LLC. Total consideration for the transaction was approximately $148 million.

High Sierra and its minority partners acquired the depleted reservoir in 2006 and subsequently developed the Monroe facility in order to serve the expanding energy needs of Mississippi and other areas of the Southeast, Mid-Continent and Northeastern United States. In exiting the natural gas storage business, High Sierra plans to direct proceeds from the strategic divestiture to its core businesses, which include crude oil logistics, oilfield water treatment and recycling services, and natural gas liquids logistics.

'Natural gas storage services are no longer a key component of our strategic business model,' said James Burke, High Sierra Energy Chief Executive Officer. 'The divestiture of Monroe Gas Storage presents an opportunity for High Sierra to focus our capital and our efforts on core areas of growth for the partnership.'

Tudor, Pickering, Holt & Co. Securities, Inc., served as financial adviser to Monroe on the transaction.

This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser. More

Related News

Join 70,000 other oil and gas professionals

Network with others, build your profile, and receive the latest oil and gas news in your inbox. It's free!

Your details are never shared or sold. We hate spam too.

» More Jobs       » Upload a free Job       » Upload your CV

More Europe Jobs

More Global Jobs

Opinion & Commentary

  • Eight pieces of our oil price predicament
    A person might think that oil prices would be fairly stable. Prices would set themselves at a level that would be high enough for the majority of producers, so ...
  • Give us a break...
    I see that Oil & gas UK has been talking again about the need for George Osborne to ‘put his money where his mouth is’ (I paraphrase!) and change the fiscal terms operati ...
  • Why it's different this time
    Is this downturn in oil prices going to be different for investors? I think it might. In fact, I think North American energy companies have a good chance of withstanding th ...

» More Opinion & Commentary         » Write for us             RSS RSS

Oil & Gas Training

Mastering 4D Seismic
Ian Jack, London, 06 Nov 2014

Petroleum Geology of West Africa
Duncan Macgregor, London, 12 Nov 2014

Introduction to Contingency Planning: The value to oil and gas companies in high-risk areas
Mark Theobald, London, 18 Nov 2014

All Upcoming Training


Opinions & Commentary

De-marginalising small oil fields

by Edward Marriott

Read More »